Nigeria Expands CNG Programme as Government Targets Lower Transport Costs

Nigeria’s Federal Government is expanding its compressed natural gas (CNG) transport programme as it seeks to reduce the cost of transportation and increase the use of locally produced gas in the country’s road transport system.

The Presidency said more than 100,000 vehicles had been converted to CNG and more than 90 CNG stations were operational as of September 2026. The government is targeting further expansion of the programme as it works toward its October 1 implementation milestone.

Government targets lower transport costs

The National Affordable CNG Transit Programme was introduced as part of the government’s response to rising transportation costs following changes in the country’s fuel market.

The programme is designed to encourage the conversion of vehicles from petrol and diesel to compressed natural gas, which the government has promoted as a lower-cost alternative for eligible vehicles.

The Presidency says the expansion is intended to make transportation more affordable for Nigerians while also supporting greater domestic use of Nigeria’s natural gas resources.

However, the availability of CNG vehicles and refuelling infrastructure varies across the country. The effect on individual commuters therefore depends partly on whether CNG-powered transport and refuelling facilities are available in their area.

More than 100,000 vehicles converted

The Federal Government says more than 100,000 vehicles have been converted under the programme.

It also says more than 90 CNG stations are currently operational. These facilities form part of the infrastructure needed to make CNG a practical fuel option for commercial and private motorists.

The government has also been working with transport operators and other stakeholders to expand access to CNG-powered buses and conversion facilities.

The scale of the infrastructure rollout will be important because vehicle conversion alone does not guarantee lower transport costs. Drivers and transport operators also need reliable access to fuel.

Why CNG matters to Nigeria

Nigeria has substantial natural gas resources, making CNG part of a broader strategy to increase domestic gas utilisation.

Instead of relying entirely on imported or petroleum-based transport fuels, the government wants more Nigerian gas to be used domestically.

The approach also fits into the government’s wider gas-development strategy, which includes increasing gas production, developing processing infrastructure and expanding the domestic market.

For the transport sector, the intended benefit is lower fuel expenditure for vehicles that can operate on CNG.

What commuters could see

If the programme achieves its objectives, lower operating costs for CNG-powered buses and other commercial vehicles could create room for reduced fares.

The government has consequently linked the CNG programme to its broader objective of making public transportation more affordable.

But lower fuel costs do not automatically translate into lower fares.

Transport prices can also be affected by vehicle financing, maintenance, spare parts, driver costs, road conditions, route demand and other operating expenses.

The actual effect on commuters therefore needs to be measured through transport fares and operating costs rather than assumed from the price of CNG alone.

Infrastructure remains important

The expansion of refuelling stations is one of the programme’s central challenges.

A driver may have access to a converted vehicle but still face difficulties if CNG is unavailable along frequently travelled routes.

The government says more than 90 CNG stations are operational, but national availability remains uneven.

Further expansion of the refuelling network will therefore be important if CNG is to move from a limited alternative fuel into a widely available transport option.

Nigeria’s October target

The Federal Government has set October 1 as an important milestone for the next phase of the programme.

The Presidency says the programme is being expanded to improve the availability of affordable transportation and strengthen the domestic CNG ecosystem.

The significance of the October milestone will ultimately depend on how many additional vehicles, buses and refuelling facilities become operational and whether those developments translate into measurable savings for transport operators and passengers.

What to watch next

The main indicators will be the number of additional vehicle conversions, the expansion of CNG stations and the availability of CNG-powered public transport across major Nigerian cities.

Transport fares will also provide an important measure of whether the programme is delivering its intended consumer benefit.

As of September 27, 2026, the government says more than 100,000 vehicles have been converted and more than 90 CNG stations are operational, while the programme continues to expand ahead of its October milestone.